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Mandato Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 68 A ta Manufacturing costs:

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Mandato Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 68 A ta Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year $ 10 $ 6 $ 4 $ 220,000 A ta $ 6 $ 61,000 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory Year 1 Year 2 0 1,000 11,000 10,000 10,000 7,000 1,000 4,000 The net operating income (loss) under variable costing in Year 2 is closest to: $261,000 O $74,000 $68,000 $216,000

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